Housing Crisis in Canada: More Homes or Curbing Immigration?

Find out the best solution to the housing crisis in Canada: More homes or curbing immigration. Discover Canadians' opinions and expert insights.

Most Canadians are open to the idea of home values decreasing in order to improve affordability for others, according to a recent poll conducted by Nanos Research for Bloomberg News. The survey discovered that 70% of respondents expressed either happiness (40%) or slight happiness (30%) at the prospect of lower home prices. Interestingly, the preferred solution to the high cost of housing among Canadians is the construction of more homes, including those subsidized by the government. However, 12% of those surveyed believed that curbing immigration would be the best way to tackle the issue.

These findings challenge the prevailing notion that homeowners are always driven by the desire to see their property values rise. Since approximately two-thirds of Canadian households own their homes, this contradictory sentiment highlights a shift in perspectives regarding real estate prices. It is becoming increasingly clear that housing costs have emerged as a significant social problem, putting pressure on Prime Minister Justin Trudeau. Escalating apartment rents and soaring mortgage rates have created barriers to home ownership for many younger Canadians.

The new housing minister, Sean Fraser, has emphasized the need to enhance affordability without causing a decrease in housing prices. However, the methods the government plans to employ to strike this delicate balance remain unclear. Given the urgent nature of the issue, Trudeau will be convening with members of his Liberal Party this week in London, Ontario, under mounting pressure to outline a comprehensive strategy to address the rising cost of living.

Over the past decade, the benchmark home price in Canada has more than doubled, reaching a formidable $755,000. This surge in prices has resulted in a growing discrepancy between property values and earnings. In major cities like Toronto and Vancouver, the median mortgage payments consume a significant portion of household income, as economists at National Bank of Canada have noted. Across ten major cities, mortgage payments absorb approximately 59% of household earnings. These calculations are based on mortgages with 25-year amortization periods; however, many Canadians have taken out longer loans to mitigate monthly financial burden.

According to the Nanos poll, the most popular proposed solution to reduce housing costs was the construction of more housing, selected by 23% of respondents. Approximately 22% advocated for increased government-subsidized housing, while 21% prioritized lower mortgage rates. Fewer Canadians supported policies designed to discourage the purchase of second homes, and a mere 1.5% believed that eliminating the capital-gains tax exemption on the sale of primary residences would significantly improve affordability.

The survey, conducted between September 2 and September 4, gathered responses from 1,044 Canadians through phone and online questionnaires. The poll carries a margin of error of 3 percentage points, 19 times out of 20.

In conclusion, the survey reveals that most Canadians are willing to witness a decrease in home values if it means enhancing affordability for fellow citizens. The poll suggests that building more housing, including government-subsidized options, is the preferred solution according to the majority of respondents. These findings underscore the urgent need for the Canadian government to address the pressing issue of rising housing costs and outline an effective strategy for improving affordability.